Unsecured $25K Loan

[daisyduke]

My sis owes AMEX 25K. She makes enough money, but doesn't own property. So only owns a car. I would guess her score is in the low 700's only because of her utilization is probably hurting her. No mortgage. She wants to apply for an unsecured loan in the amount of $25K. I told her that i didn't think any bank would give her a 25K unsecured loan.

She wants to pay off AMEX reason for the loan, lower rate.

I dont' think she has a shot at getting that kind of a loan.

I believe this because of my own personal experience...At one point in my life, I paid off two mortgages, five credit cards totalling $60K and my score was in the 800's....my husband at the time paid everything on time. he did all of it and did a great job. I called Wachovia (back then it was First Union) for a $5K loan with a score in the 800's and they wouldn't give it to me.....with terrific credit....

[DI]

If your sister have $25k in credit card debt, its very unlikely she would get approve for a $25k consolidation loan.  The underwriter is going to take a look at the CC utilization.  Is she maxed out?

[daisyduke]

I don't know if she is maxed out. I do know that I believe she only has bloomies card and AMEX. And for every amount higher than $200 that she charges on AMEX, that amount gets rolled over into a credit account. I don't think AMEX has limits....i know she pays on time. so her payment history is probably good.  point being, a $25 K unsecured loan is downright silly....a few years ago she owed them 60 k. that kind of debt would make me sick,personally....

[DI]

I haven't seen any personal loans on the market advertising interest rate less than 10.9%.  Even if she get approve, she will be getting a high interest loan.  Her best option is to stop spending and make cuts until the CC balance is paid in full. 

[daisyduke]

thanks for the info DI. too much botox and restalyne...one day you wake up;...with big lips, a high forehead and major AMEX bill...lmao lmao lmao

[DI]

lol. i hope she's beautiful and younger looking spending all that money

[CreditDrama85]

i had this Amex card where all purchases over $200 were rolled into a revolving line. then one day Amex cancelled me and demanded everything in full. search the boards and you will see other posts on this. Amex wrongfully reported as a charge-off. luckily i got it removed.

the amex user in this case is seeking a loan so they are not at the mercy of amex. i would suggest a credit union, or direct competitor (depending on her utilization) like Discover Card.

[daisyduke]

CreditDrama, thanks. that's the same deal she has...she used to take me to Costco and I would load up my cart. she told me one day that she needs to charge more than  $200...I couldn't understand it. Then she further explained it to me about how any purchases $200 and over get rolled in "sign and travel" i think... Huh.....

[CreditDrama85]

exactly. and charges under 200 need to paid in full, so it encourages you to spend...my letter said proportion of bal to credit lines too high and they closed account. i continued to pay minimum but they said since account was cancelled, it was an open/charge account and what they offered me was a "privelige that was terminted". btw trans union and equifax deleted the charge off when i disputed but it is still on experian. i hate amex.